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Indigenous manufacturing in coal sector

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GoI mandates Preferential Purchase Policy

In line with the government’s vision of Atma Nirbhar Bharat the Ministry of Coal (MoC) is committed to advancing the Make in India agenda in the coal mining sector. 

Recognizing the importance of indigenous manufacturing and self-reliance, the MoC has been actively collaborating with stakeholders to implement policies and initiatives that foster domestic production and innovation.

In collaboration with Coal India Ltd (CIL), the MoC has initiated several measures to promote indigenous manufacturing and support local suppliers. 

Domestic manufacturers are being given opportunities to showcase their capabilities through trial orders at CIL and contribute to the development of the coal mining sector. 

Trial tenders have been floated for various equipment, including wheel dozers, crawler dozers, motor graders, and tyre handlers, among others, providing opportunities for domestic manufacturers to participate and contribute to the growth of the sector.

Procurement process

Furthermore, the Ministry of Coal is working closely with CPSEs to streamline procurement procedures and provide incentives for domestic manufacturers. 

As part of this effort, relaxations in Security Deposit, Liquidated Damages, and Risk Purchase have been incorporated in trial orders, creating a conducive environment for the growth of new sources.

In addition, the Government has mandated Preferential Purchase Policy – Make in India (PPP-MII) guidelines issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in all tenders. 

This policy grants preference to Class-I Local Suppliers, further incentivizing domestic manufacturing and promoting self-reliance in the coal mining sector.

Currently, Coal India Limited possesses a fleet comprising 4,120 indigenous Heavy Earth Moving Machinery (HEMM) units of diverse types and capacities, out of a total fleet strength of 4,747.


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